THE MANAGEMENT OF VENTURE CAPITAL AS A TYPE OF FINANCIAL RESOURCES: GOALS & OBJECTIVES

2021 ◽  
pp. 174-191
Author(s):  
Tetyana Demchenko ◽  
Keyword(s):  
Venture Capital ◽  
Capital Investment ◽  
World Market ◽  
Real Sector ◽  
Venture Capital Investment ◽  
Venture Investment ◽  
The World ◽  
Capital Financing ◽  
The One ◽  
Venture Business

In the context of Ukraine’s integration into the world market, there is a growing interest in creating a control system for all stages of venture capital activities. The mechanism of effective management of venture activities of an enterprise should become a tool for establishing this system. The system of information flows is of great importance, which provides information to the process of making management decisions on a risky innovative project at a venture capital enterprise. The purpose of the venture business is to make a profit on the invested funds [1]. Unlike simple investment, venture capital is the most risky form of capital investment. However, if the project is successful, venture capital investment is the most profitable. Venture investment is, on the one hand, a way of financing the innovative vector of the economy, on the other, an innovative form of entrepreneurship. The main goal of venture capital financing is that the monetary capital of some entrepreneurs and the intellectual capabilities of others (original ideas or technologies) are combined in the real sector of the economy in order to bring profit to both types of entrepreneurship in a new company.

Pulse and Progress of Venture Capital Financing in India: An Analytical Study

Think India ◽  
2019 ◽  
Vol 22 (3) ◽  
pp. 553-562
Author(s):  
Dr. Devarajappa S
Keyword(s):  
Venture Capital ◽  
Capital Investment ◽  
Analytical Study ◽  
Economic Empowerment ◽  
Statistical Tools ◽  
Venture Capital Investment ◽  
Secondary Sources ◽  
Current Trends ◽  
Capital Financing ◽  
Secondary Information

The Main objective of the paper is to examine the current trends and progress of the venture capital in India and the paper also highlights the concept and stages of financing of venture capital. To meet the aim objective of the study the researcher used secondary sources. The required secondary information has been collected through various articles, reports, magazines’ and websites. To examine the trends of venture capital in India, IVCA (Indian Venture Capital Association) report is used.  For the purpose of examine the data; the statistical tools like Mean, Standard Deviation, Charts and ANOVA, Correlation coefficient have been employed.   The study concludes that, the venture capital investment has been increasing in India and this is the positive indication for the country, to curb the unemployment, economic empowerment of people through maximizing startups in India

scholarly journals Impact of Venture Capital Investment Syndication on Enterprise Lifecycle and Success

2016 ◽  
Vol 8 (5) ◽  
pp. 75 ◽  
Author(s):  
Asif Siddiqui ◽  
Dora Marinova ◽  
Amzad Hossain
Keyword(s):  
Venture Capital ◽  
Capital Investment ◽  
Survival Duration ◽  
Venture Capitalists ◽  
Venture Capital Investment ◽  
Investment Theory ◽  
Capital Financing ◽  
History Of ◽  
Investment Growth ◽  
The Impact

The article investigates the impact of venture capital investment and investment syndication on enterprise lifecycle and success using the exit history of venture capital backed companies in Australia. It is observed that the venture capital backed companies tend to outperform those which are not while companies receiving syndicated venture capital investment tend to outperform the other venture capital backed companies. Based on the classic venture capital investment theory, we argue that venture capitalists essentially engage in superior venture selection through pre-investment screening and contribute to entrepreneurial development through post-investment monitoring and value creation. We then empirically investigate the lifecycle of the Australian venture capital backed companies from company formation to first venture capital financing round to exit. Survival duration of the ventures, investment growth and exit status are specifically analysed to capture the lifecycle. The findings show that the survival duration prior and post venture capital investment, venture capital investment growth in successive rounds and investment syndication increase the probably of success for the ventures.

scholarly journals Trends in innovation and investment development of high-tech enterprises

2019 ◽  
Vol 7 (5) ◽  
pp. 79-92 ◽  
Author(s):  
I. A. Mandych ◽  
A. V. Bykova
Keyword(s):  
Venture Capital ◽  
Capital Market ◽  
Capital Investment ◽  
Growth Promotion ◽  
International Market ◽  
High Tech ◽  
Venture Capital Investment ◽  
Success Stories ◽  
Venture Investment ◽  
Market State

The article deals with the main prospects and problems of investing in innovative activities of high-tech enterprises. The principles of construction of venture investment and the mechanism of venture financing of a project when creating technological innovation were investigated. The overview of the Russian venture capital market shows the positive dynamics associated with the termination of a significant outflow of funds from the market and the growth in the number of newly created funds. There were also revealed promising areas for the development of the venture capital market and support high-tech enterprises, namely: success stories; low profitability of traditional investment instruments; the growth of activity of state corporations; growth in the number of startups focused on the international market; state support; angel investing growth; promotion of VC and innovations; the emergence of smart industries. Such barriers to the development of venture capital investment as the disunity of the market, the lack of co-investment. There were made conclusions about the prospects of engaging businesses in the processes of research and development of new products, as well as its promotion in promising markets among partners with special competencies, and that human resources are becoming the most important component of the success of high-tech industries.

scholarly journals Prospects for the Development of IT-clusters in Ukraine on the Basis of Venture Financing

2019 ◽  
pp. 190-195
Author(s):  
V. Mishura ◽  
V. Volodchenko
Keyword(s):  
Venture Capital ◽  
Capital Investment ◽  
Information Technologies ◽  
State Regulation ◽  
Cluster Policy ◽  
Innovation Ecosystem ◽  
Venture Capital Investment ◽  
Venture Investment ◽  
Venture Financing ◽  
The Impact

The basic principles of the development of IT clusters as a component of the national innovation ecosystem of the country were reviewed and analyzed. A conceptual model of organizational and economic state regulation of IT clusters in the national economy has been developed, which harmonizes the social and economic interests of the participants of the cluster association and is aimed at forming a state cluster policy based on improving the competitiveness of the IT sector. Practical recommendations for improving the state policy of development of IT-clusters in Ukraine on the basis of venture capital investment are substantiated. It has been established that despite the positive dynamics of venture investment in the IT sector in recent years, unfortunately, it is still in the process of becoming. The intensity of the impact of venture capital on the formation and development of the IT sector in Ukraine is estimated. The main factors that impair the development opportunities of this type of investment in Ukraine are investigated. Analyzed the structural and regional features of the development of IT-clusters. Based on the analysis, it was revealed that the development of IT clusters on the basis of venture investment is a promising and modern investment direction for Ukrainian enterprises. Keywords information technologies, IT cluster, IT sector, venture financing; innovation development, venture capital.

scholarly journals The Role of Founder-CEO, Human Capital and Legitimacy in Venture Capital Financing in China’s P2P Lending Industry

2021 ◽  
Vol 13 (4) ◽  
pp. 1625
Author(s):  
Hui Zheng ◽  
Xuexu Piao ◽  
Sangmoon Park
Keyword(s):  
Human Capital ◽  
Venture Capital ◽  
Capital Investment ◽  
New Ventures ◽  
Third Party ◽  
New Venture ◽  
Venture Capital Investment ◽  
Capital Financing ◽  
P2p Lending ◽  
Industry Experience

The paper investigates factors to financing from venture capital (VC) in the Peer to Peer (P2P) lending industry of China. We focus on the signal effects of founder-CEOs, human capital, and legitimacy on venture capital investment. An important issue for entrepreneurship research is how to reduce t information asymmetry between entrepreneurs and potential investors. This paper builds on the signal theory to explain how new ventures can signal their qualities and promising businesses to potential investors to obtain external investment. By using a total of 2388 new ventures in China’s P2P lending industry, this paper analyzed the effects of factors on VC investment. We found that the founder-CEO status and the legitimacy of third-party signals are crucial to obtain the support of venture capital. We found that the CEO’s international experience has positively significant on VC financing, but the industry experience of CEOs is insignificant to get VC investment. The results indicate that new venture should pay more attention to build the ways of signaling and legitimacy of new venture to get external resource providers.

scholarly journals Empirical Analysis of Hungarian Firms According to Venture Capital Investment Criteria

2016 ◽  
Vol 9 (1) ◽  
pp. 16-32
Author(s):  
Judit Edit Futó
Keyword(s):  
Venture Capital ◽  
Capital Investment ◽  
Selection Process ◽  
Statistical Tests ◽  
Venture Capitalists ◽  
Venture Capital Investment ◽  
Capital Financing ◽  
Venture Capital Firms ◽  
Investment Process ◽  
Index Investment

Abstract Over the past decade the venture capital industry has become more and more prominent, not just on a global level, but in Hungary, too. Thanks to the JEREMIE Program a large number of new venture capital firms are located in our country, and therefore an investment wave has started. The aim of the paper is to sort micro- and small sized enterprises in terms of how appropriate is a venture capital financing. The main topic of the paper relates to the selection of firms for venture capital investment; therefore, in the first part of the study we briefly summarize a general venture capital investment process, highlighting both the selection process and the criteria used for selection. Then we propose 3 indexes (trustworthiness index, openness index, investment index), which we have created to help venture capitalists to decide whether the targeted enterprises are appropriate for them, or not. In the main part of the paper we provide a classification of micro- and small sized Hungarian firms based on my own survey, and we analyze what kind of relationship exists between the proposed indexes and the type of the classified firms. The result of the classification is that we identify four main firm types and, based on statistical tests, it can be said that there is no significant relationship between the trustworthiness index and the clusters, but that there are between the two other indexes and the clusters.

Clean-tech Venture Capital Investment in the United States, 1995-2020

2021 ◽  
Vol 39 (3) ◽  
Author(s):  
Yochanan Shachmurove
Keyword(s):  
United States ◽  
Venture Capital ◽  
Capital Investment ◽  
Environmental Issues ◽  
The United States ◽  
Clean Technology ◽  
Quarterly Data ◽  
Venture Capital Investment ◽  
Venture Investment ◽  
Technology Industries

This paper studies venture capital investment in the United States, with an emphasis on the Clean-Technology industries. The Clean-Technology industries encompass ventures that compete in markets with products and services that explicitly take environmental issues into account. This paper explores the importance of macroeconomics variables, aggregate venture capital investment on Clean-Technology and investment backed by venture capital. Quarterly data of capital venture investment and number of deals are used for the period 1995-2020. The results indicate that Clean-Tech investment offers investors possibilities for some degree of diversification.

scholarly journals CURRENT TRENDS IN THE DEVELOPMENT OF VENTURE ENTERPRISE IN UKRAINE

2021 ◽  
Author(s):  
Antonina Lahun
Keyword(s):  
Venture Capital ◽  
Asset Management ◽  
Capital Investment ◽  
Structural Parameters ◽  
Venture Capitalists ◽  
Investment Funds ◽  
Venture Capital Investment ◽  
Closed End Funds ◽  
Venture Enterprise ◽  
Venture Business

The article is devoted to the analysis of quantitative and structural parameters of venture business development in Ukraine, so it seems appropriate to focus on its most generalizing features and characteristics, which have been clearly outlined in recent decades. First of all, it should be noted the extremely low level of capitalization of the domestic venture capital market. Also important for a comprehensive analysis of the current state and trends in domestic venture entrepreneurship is the number of venture capital investment institutions and a significant increase in the level of concentration of the domestic asset management market. Another conclusion that follows from the data concerns the dominance of venture mutual investment funds, ie closed-end funds, in the subjective structure of domestic venture entrepreneurship. Domestic venture funds are also characterized by an extremely insignificant share of the value of their assets in the gross domestic product of our state. Another well-established trend in the structural dynamics of domestic venture funds in the last decade is the growing share of foreign capital in the structure of their investment flows. In addition, in recent years there has been a clear eloquent trend, namely: the growing share of domestic individuals in the subjective structure of investors in venture mutual investment institutions. International corporate structures, business incubators and accelerators are actively opening their innovative divisions and representative offices in our country. It is worth noting that the number and volume of funding for Ukrainian startups is increasing from year to year. In recent years, the processes of attracting funding through crowdfunding platforms and grant sources have been developing dynamically. Evidence of the growing interest of foreign venture capitalists in Ukrainian startups is the intensification of mergers and acquisitions in this area. Unfortunately, maintaining the extremely low economic motivation of venture capitalists to invest money in the early stages of research and self-search by inventors in most cases leads to dependence on investors and unequal exchange of property rights for scientific ideas for financial resources.

Equity Regulation and U.S. Venture Capital Investment

2017 ◽  
Vol 2017 (1707) ◽  
Author(s):  
Tyler Atkinson ◽  
◽  
John V. Duca ◽  
Keyword(s):  
Venture Capital ◽  
Capital Investment ◽  
Venture Capital Investment
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